By 2016 Qatar is projected to face its first budget deficit in 15 years, AFP reported Wednesday, but that's not going to stop the country from investing heavily in its World Cup construction.
Qatar has been hit by low oil prices as Saudi Arabia, the OPEC authority, still has no plans to cut oil supply to boost cost. But infrastructure projects has helped Qatar diversify its spending to rely on other profits beyond oil exports.
"The fall in oil prices that began in June 2014 was not anticipated," Saleh Al-Nabit, development planning and statistics minister, told AFP. "If they persist, lower oil prices will narrow the government's fiscal cushion but our considerable financial reserves will provide an ample buffer. Important capital spending plans will proceed."
Qatar is expected to spend $200 billion in its World Cup infrastructure projects, which include a new metro system, a new port and a new city north of Doha.
But the country is still at risk of losing the World Cup bid as authorities continue to investigate the FIFA corruption and bribery scandals.
